The document discusses a bicycle manufacturing company that targets the high-end bicycle market with a focus on quality and differentiation. The company promotes its brand through parties and trade shows instead of advertising. This niche strategy led to a 25% increase in bicycle sales despite the global recession. However, the company faces conflicts with its distribution channel and decisions around importing raw materials. It is also dependent on expensive, Italian-made components and has relatively low profit margins despite higher prices and increased sales. It is recommended that the company shift to machine-made components, source lower-cost components from countries like China, build its own brand image, and import materials directly to increase sales and profits.

1.  High-design
bicycle manufacture.
 Targeted that segment where there is no strong
bicycle tradition, & where quality and differentiation
was lacking.
 Co-branding partnership to distribute and promote
their brand.
 Promotion by organizing parties & trade shows
instead of normal advertising.
 Instead of global recession Niche position in high end
segment leads the bicycle sales increase by 25%.

2. 
Conflict with distribution channel.
Conflicting of decision regarding importing
of raw material.


Dependent on bicycle components from Italian craftsmen.

Use of expensive components.

Profit Margins was relatively low, despite increase in
sales and high price

3.  Company
should shift over to machine made
component, which will be profitable for long run.
 Company
should purchase low cost components from
countries like China.
 Company
 Importing
should create brand image of its own .
directly may increase in their sales up to
50% on final costs.

4. BY MITTAL JI